National Republican., 1887-08-13
Tie Laws as to Bonds.

On the 25th Of February, 1862, Congress
passed the law entitled can act to author
ize the issue OF United States notes, and
for the redemption thereof, and for the
funding the floating debt OF the United
States" The fifth section of that law
reads as follows:
That all duties on imported goods hall he
paid in coin, or in notes payable on demand
heretofore authorized to be issued, and by law
receivable in payment of public dues aud the
coin so paid shall be set apart as special fund,
and shall be applied as follows
First. To the payment in coin OF the interest
on the bonds of the United States
Second. To the purchase or payment OF one
1d centnm of the entire debt of the United
states, to be made within each fiscal year after
the lst day of July, 1852 which Is to be set
apart asa sinking fund, and the interest OF
which shall in like manner be applied 70 the
purchase or payment of the public deb. as the
Secretary of the Treasury shall from time to
time direct.-(United States Statutes at Large.
vol. ~, page 3is).
On the 18th Of March, 1860, Congress
passed the law entitled Gan act to strengthen
thepuLlic credit" The following Is an ex-
tract from 1t
Dut hOut VI shlu lutcIesl-DeuIlug OD.lsillOUN
not already due shall be redeemed or ptld be
fore maturity unless at such time United States
notes arc convertible into coin at the option of
the holder, or unless at such time bonds of the
United States bearing n lower rate OF interest
than the bonds to be redeemed can be s)li At
par in CON- United States Statutes at Large.
vol, lG p. u
On the Sd of March, 1881, Congress passed
the refunding act, the second section OF
which reads as follows
That the Secretary of the Treasury NAV at
any time apply the surplus money in the tfeae-
ury net otherwise appropriated o. 50 much
thereof as lie may consider proper, t. the pr.
chase OF redemption of United States bonds
Trorlded, That the bonds SO purcha,ei or re-
deemed shall constitute no part of the sinking
fund, but shall be cancelled -(United States
Statutes at Large, vol. 81, D. 457.)
These laws all consist with each other;
they show one purpose, and that purpose is
to pay to the last dollar the debt OF the
United States. There is not a word In
either Of them which conflicts with a word
in either OF the others. They make har-
monious and perfect whole.
On the assembling Of Congress last De-
cember, Mr.. Manning, then Secretary Of the
Treasury, sent his report to Congress. 10
treating OF these bonds and the accumulating
surplus he held that the bonds could not
be paid before maturity without the consent
OF the holder, which for the AIS would be
Sept. /, 1891, and for the 4s July Il 1907,
He said:
On and after those dates respectively but
not until then, those loans are payable, at the
option of the United States, at their ftcs aud
without premium, The present premium on
the ~ per cents, Of 1891 Is about II per cent
The present premium on the per cents. of 1907
is about 2S per cent. To continue our present
surplus taxation and to employ its proGeels
now or for some years TO come in giving to the
bondholdcrs any such, or still higher, pre-
miums by antioipatory purchase Of those bonds
before they are due and payable at par is a hs-
cal policy so unnecessary, extravagant, and
merciless TO the industrious toilers OF our land,
from whose earnings profits on capital are de
Quoted and all the revenues of the treasury
taken that cannot presume their representa-
tives in Congress would let stand any law de-.
voiving upon the head Of this department such
thriftisss task.
This message was to Congress po!it-
ically In sympathy with Mr.. Manning, and
composed Of men who know the laws by
which the country is governed. They, BY
their actions, said to Secretary Mauning's
appeal, "That there was no necessity for
any law to dispose Of the bonds or surplus,
because the laws in existence, made by
Republicans, provided for just such a cen
tingency as you say has arrived. Nc. Sec
retary, read your laws over again and carry
them out"